Energy efficiency—does it save energy?

Environmentalists tell us that improving energy efficiency will lead to a reduction in energy consumption whereas economists are convinced that the opposite will occur. This paper claims that the goal should be fewer carbon dioxide emissions not less energy use, which requires development of non-fossil fuel sources. The promotion of energy efficiency should thus not be to reduce energy consumption but to produce a higher quality of life and enable society to fund the transition to a greener and more sustainable future.